Está en la página 1de 27


A project is required for a successful venture so every venturist first search for a project .AS modern business is illusive in nature so it is difficult to find out the opportunities .To find out the opportunities there are so many steps which have to culture.

Generation and screening of project ideas consists nine steps

continued 1 Generation of ideas 2 Monitoring the environment 3 Corporate appraisal 4 Tool for identify investment opportunities 5 Preliminary Screening 6 Project rating Index 7 Sources of positive net present value 8 Self questions of entrepreneur

. then the idea supported by the associate and approved by financial institutions bank assist the project .1 Generation of ideas • It is always seen that the ideas are based on existing field of technology to offer various present product or services. but sometimes the specialized technology and marketing expertise or some other competence feels that he can produce a product which carter to a presently unmeet need or serve a market where demand exceeds supply or effectively compete with similar is the SWOT analysis which is used to stimulate the project idea.

Examples Two successful companies which have been exceptionally in tapping the creativity of employees are Bell telephone laboratory and 3m telephone Hindustan uniliver in India is one of the company which follows the pattern .

for monitoring the environment business sector divided Into six parts .2 Monitoring the environment Competitive abilities of a firm depend on its environment it is one of instrument to access the ability of the firm. So a corporate appraisal is needed for monitoring the environment .

1 Economic sector  State of economics  Overall rate of growth  Growth rate of different sector  Linkage with world economy  Balance of payment 2 Governmental Sector  Industrial policy  Government programmes and projects  Tax framework  Import and export policy  Financing norms .

3 Technological sector  Emergence of new technology  Access to technological knowhow 4 Sociodemographic sector  Population trends  Age shift in population  Income distribution  Educational profile  Employment of women .

5 competitive sector  No of firms in industry  Entry barriers  Degree of homogeneity  Comparison with substitutes  Marketing policies 6 supplier sector  Availability of cost of product  Availability of cost of money  Availability of chain of supply .

Broad areas of corporate appraisals are Marketing and distribution •Market image •Product line •Market share •Customer loyalty • cont . corporate appraisal For identifying better investment opportunity appraisal of strength and weakness is necessary.3.

Production and operation • • • • Condition and capacity of plant and machinery Availability of raw material Degree of vertical integration Cost structure Research and development • Research capability of the firm • Track record of new product • Laboratories and testing facilities .

Corporate resources and personnel •Corporate image •Clout with government and regulatory authority •State of industrial relation Accounting and finance •Financial leverage •Tax situation •Cost of capital •Relation with share capital .

Tools for identifying investment opportunity There are various framework for identifying various promising investment opportunity These are o life model cycle approach and experience curve oPorters model. profit potential of industries .4.

profit potential of industries • Michel porters has argued that profit potential of industry depends on the combined strength of the following five competitive forces • Threats of new entrants • Rivalry among existing firm • Pressure from substitute product • Bargaining power of buyer • Bargaining Power of seller .Porters model .

in this stage the product and the technology are introduced and lured by promising entrepreneurs as a result competition arises and only new entrants are survives . cont .life cycle approach • There are mainly four stages of life of a product 1 pioneering stage.

2 Rapid growth stage The chaotic development stage over . 3 Maturity and stabilization stage After enjoying a rate of growth the industry enter into the maturity stage then after some extent of maturity it enter into stabilization stage. 4 Decline stage.the firms are survive and then they applied different marketing tricks to increase their sales and profits. with the due course of time the customer demand and preferences changes encroachment of new product occurred then the existing product demand down slow and the market share of the product declined .

The experience curve shows how the cost per unit behaves with respect to the accumulated volume of product.The experience curve is a useful tool for planning such investments.The experience curve For long term survival of the firm optimum utilization of resources and minimization of cost is necessary . The accumulated production means the total number of unit produced cumulatively from very beginning .

A study of existing industries in terms of profitability . cont .capacity .knowledge of capacity utilization provide potentiality for further investment.5 scouting for project idea It is hard to difficult to get a good project idea because it is illusive in nature  Analyze the performance of existing industry.utilization can indicate Promising investment opportunity investment .

 Examine the input and output of various industry  Review import and export.  Study plan outlays and government guidelines  Look at the financial decision of financial institutions and developmental agencies  Analyze economic and social trends  Study of new technological development  Attained trade fairs .

6 . Following aspects are taken care for screening.  Comparability with the promoter  Consistency with government priorities  Availability of inputs  Adequacy of market  Reasonableness of cost  Acceptance of risk factor .Preliminary screening When feedback phase is over a preliminary screening is required to eliminate the ideas which are not promising in nature.

• Acceptability of risk level. • Following points are consider for checking risk level • Vulnerability to business cycles • Technological changes • Competition from imports • Shifts in consumer preference • Govt control over price and distrubution .

The idea must be matched with the interest .personality and resources of the entrepreneur. It is accessible to him iii.Compatibility with the promoter. Like . A real opportunities have three capabilities i. It fits with personality of the entrepreneur ii. It offers him the prospectus of rapid growth.  Consistency with governmental priorities The project idea must be feasible given the national goals and governmental regulatory framework.

• Will be there any difficulty in obtaining the license for the project.• Is the project consistent with national goals and priorities • Are there any environmental effects contrary to govt regulations • Can the foreign exchange requirement may easily fulfilled. The resources required must be reasonably assured .  Availability of inputs.

• Adequacy of market. • To judged the adequacy of market following factors have to be examined • Total present domestic market • Competitors and their market share • Export markets • Competitors and their market shares • export markets • Sales and distribution system • Barriers to the entry for new units .

the following should be examined in this regard Cost of material inputs Labour cost Factory overheads General administration expenses Selling and distribution cost Service cost Economic of scale .• Reasonable in cost.

 Identify factors relevant for project rating  Assign weight to the factor  Use suitable rating scale or and rate various factors  Multiply factor rating with factor weight  Add all to get proper rating .7 project rating index For screening the proposal project rating is known as one of the best method and so many steps are involve in it.

there are six main entry barriers • Economics of scale • Cost advantages • Marketing research • Technological change • Government policy .8 sources of positive net present value The imperfection in entry barriers cause positive NPVs .

Namita mishra . Thank you Dr.on being an entrepreneur Being an entrepreneur various self oriented questions are asked.9 .